Jones Lang LaSalle is optimistic about 3 alternative properties

Jones Lang LaSalle is optimistic about 3 alternative properties

The prices of traditional properties such as residential, office, commercial and industrial buildings have accumulated considerable gains over the past 10 years, and rental returns have fallen to historical lows. Jones Lang LaSalle’s research report on “Alternative Asset Classes in Hong Kong: Turning to Portfolio Diversification” pointed out that cohabitation space, parking spaces and data centers are the three alternative real estate investments with the best investment potential. Investors can earn a return on investment compared to traditional properties. 50 to 75 pips higher.

Ma Anping, head of Jones Lang LaSalle’s research department, said that according to the government’s speculation, there will be a shortage of 13,600 student places in this school year. The short-term space for co-existing space can be insufficient to meet market demand and have the potential to attract young professionals. People invest in this mode of living.

Cohabitation space tenants more parking space shortage potential

Due to the high rents in the private market, young professionals who rent private buildings should use up to 80% of their monthly income to pay rent. The monthly living space can be as low as 3,000 yuan, providing affordable accommodation options. There are also a large number of expatriate professionals in Hong Kong who work in Hong Kong for short-term or long-term contracts. The co-location space does not require a long-term lease. It also provides a social space and is therefore attractive. As a result, investors can get better returns when they purchase such properties.

As for the parking spaces, due to the shortage of sales, the price has risen in the past few years, and the market has recorded many new high turnover. Ma Anping believes that the demand for private car parking spaces continues to be unbalanced, and the government will not change the policy of parking space supply, which will support the price of parking spaces and the potential for appreciation. He said that the increasing demand for data centers in Hong Kong will drive demand for such assets. However, Hong Kong has insufficient land and it is difficult to expand the data center market.

In addition, Knight Frank’s latest “Hong Kong Monthly Property Market Report” pointed out that Hong Kong’s residential property prices have risen and fallen since July 2018, and property prices have fallen by more than 7% from the peak. It is expected that the prospects for Sino-US trade negotiations remain uncertain. Market sentiment continues to be weak. The average residential and luxury property prices will fall by 10% for the whole year, but the decline in property prices will narrow later this year.